Sir Jim Ratcliffe's company INEOS have agreed to shell out around £5million to Tottenham Hotspur in order to swiftly settle a lawsuit, per reports. The company, co-owned by the Manchester United mogul, was accused of breaching a five-year minimum contract worth £17.5m that allowed Tottenham to promote the company's Grenadier as the club's "official 4X4 vehicle partner."
The agreement was thought to have been inked in 2022, but INEOS had been collaborating with Spurs since they were acknowledged as the club's "official hand-sanitiser supplier" during the Covid-19 outbreak. Tottenham severed their ties with Ratcliffe's company in March and initiated legal proceedings three months later. They claim an annual instalment exceeding £5m was not paid on December 1, having already allegedly failed to pay an inflation-related sum of approximately £500,000.
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As per reports from the Telegraph, the total amount paid to Spurs remains undisclosed, but a source close to the matter suggested the agreed figure was roughly half of what the north Londoners were seeking which was around £11m.
Furthermore, Spurs were pursuing nearly £5.3m in damages when the deal was terminated with more than two years remaining. Shortly thereafter, INEOS retaliated by counter-suing Spurs for over £1m.
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They accused the north Londoners of engaging in sponsorship talks with Audi, which were tied to Harry Kane's potential transfer to Bayern Munich.
INEOS, in their counterclaim, stated: "On or around 3 August 2023 (i.e. early in contract year two), Todd Kline of the club indicated to Ashley Reed of INEOS that the club had been in discussions with the German car manufacturer Audi AG in connection with rights which were the same as, or substantially similar to, the rights granted to Ineos under the agreement and/or the club had been negotiating with Audi in respect of rights which were exclusive to Ineos under clause 4 of the agreement.
"According to Mr Kline, the discussions and/or negotiations related to a proposed transfer of the club's player Harry Kane to the German club FC Bayern Munich."
INEOS' defence also highlighted that the commercial partnership had "not materialised", leading to Spurs and INEOS agreeing they "could terminate the agreement with effect from the end of year three of the contract term."
They firmly asserted: "In the circumstances, it is the club which owes INEOS more than £1m for failing to provide any rights to Ineos in the final part of year three."
Spurs acknowledged holding commercial discussions with Audi, but rejected suggestions these talks entitled Ineos to terminate their agreement, given that Tottenham never finalised a deal with the German automotive giant.
Tottenham assert the arrangement with INEOS "involved annual payments starting at £2.125m in year one and increasing to £4.6m in year five, all plus VAT and index-linked to the rate of inflation" and that they would be pursuing interest "further or other relief as the court thinks fit".
At the time, an INEOS spokesperson said: "INEOS Automotive was a partner of Tottenham Hotspur from 2022, expanding on a partnership agreement that Ineos Group had in place with the club since 2020. We had a contractual right to terminate our partnership contract and in December 2024 exercised that right."
INEOS have severed partnerships with numerous major sporting organisations they had previously backed. They have already terminated arrangements with Ben Ainslie's sailing squad and the New Zealand All Blacks rugby union side.
In February, the Telegraph also reported the latter were launching legal proceedings, alleging their contract, which was anticipated to continue until 2027, was concluded prematurely, despite an existing agreement.
INEOS have maintained they have been compelled into budget reductions due to "extreme" green carbon levies in Europe. Ratcliffe has attributed the closure of their synthetic ethanol plant in Grangemouth, Scotland, which resulted in the loss of 80 direct roles and a further 500 indirect jobs, to escalating energy prices and taxes.